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I think the OP is objecting to the pressure to use the lender recommended by the agent.
I could see that being objectionable, if not outright unethical/illegal.
Quote:
Originally Posted by FalconheadWest
I disagree with this. We need to know who the lender is to know if their offer is going to be turned down based solely on lender choice. Yes, you heard me. Listing agents advise their clients all the time to turn down offers if letters come from the big banks like BofA, Chase, Wells, etc... because they won't close on time, you can never get the same person on the phone for updates, and processing is all done out of state in different time zones and the right doesn't talk with the left.
I guess in a "seller's market" you can afford to turn down offers just because you don't like the bank! I bought at the bottom of the down market, never heard of anything like this.
Some high end homes won't be shown without proof of funds. Gotta keep out the riff-raff.
Many homes - regardless of the price - won't be shown without proof of funds. As a seller, I flat out refuse to show my house to anyone who doesn't have proof of funds. My time is valuable. I'm not loading everyone up - pets included - so some lookey loo with 5 bucks to their name can see my house. My husband also works from home so there's no way we're showing the house without proof of funds. Many people won't either today.
Who you are borrowing from is none of their business. How much cash you are spending or borrowing is very much their business. They don't want to spend time showing someone $500K homes if they can not afford them.
It is the bank's business to know this, esp. if you have borrowed the money from a third party. This becomes a debt on your account as far as the bank is concerned and could disqualify you from the loan. Sign the papers without disclosing the loan, and you have committed a felony fraud.
I have bought a fair number of properties from two area brokers... they never asked once and over the years I have proved to be a "Buyer".
When I was looking at an area several hours away... I asked my broker for a referral and it worked like a charm... my broker said the person I am being referred to is a top producer with great reviews and has worked with her on several relocations.
I guess in a "seller's market" you can afford to turn down offers just because you don't like the bank! I bought at the bottom of the down market, never heard of anything like this.
You buying at "the bottom of the down market" was basically in 2008-2009, and that's a completely different era of real estate than today. It doesn't matter if you're in a buyer's or a seller's market, the big banks don't know how to do loans these days. They are there to "service" loans and buy them on the wholesale market, not initiate the loans these days. Too many other options available with local banks and brokers getting it done locally and not shipping something off to another state for processing.
Quote:
Originally Posted by Zenstyle
FalconheadWest, good to see your response. Letters from Wells Fargo especially should be turned down on principle!
No Joke!! It's truly sad how the big banks have become the ones to avoid when so many loans in the past filtered through them so smoothly. I think it started when B of A stopped allowing Brokers to broker loans through them and started making the consumer go directly to them... and then shipped off the Jacksonville for processing with the local paper-pusher in the bank has no idea what's going on.
FalconheadWest, good to see your response. Letters from Wells Fargo especially should be turned down on principle!
Funny because I have similar feelings... left me high and dry on the week I was to close!
Said the property parcel was over 5 acres and did not meet underwriting yet it was a 6 week escrow and all along no issues and the appraisal came back early and more than enough without issue.
I closed with cash that I had not planned on using...
As a listing agent with multiple offers, the Big Box banks go to the bottom of the heap, all other things being equal. Just too many issues. Big Box banks tend to be arrogant and don't respect contract deadlines -- to them, they are merely "suggested" deadlines, as one Big Box loan officer told me, "and you can always get an amendment to extend." NO, I CAN'T. If the seller has a cash back-up offer, I'm dead in the water if I can't provide an underwriting commitment by the deadline.
We debate all the time which of the big banks is the worst. (Since I work for a title company, we see a lot.) We usually all agree upon the worst of the bunch, lol. They all have high turnover rates and employees are poorly trained. I cringe every time my phone rings, because I know I'm in for an argument.
Fun arguments within the last week all with people from the same very large bank:
-Them: I need you to remove the taxes. They are paid. (For reference, property is in Chicago- tax bills come out Feb 1 and July 1) Me: The February bill is paid. The amount you are seeing is the estimate for July's tax bill. Them: They are paid. I emailed you proof. Me: That is the February bill. Your policy requires us to collect for July since it is within 30 days. The bill hasn't been released, so they are estimated. We will hold them in escrow until we receive the bill and refund them any overage. Them: Then why does the website show $0 due. Me: Because July's bill isn't available yet. We are collecting estimated taxes because of your policy. Them: Oh, so these are July's taxes. Me: Yes sir (in my head- you are an idiot.) This conversation happened after they sent me an email request and I explained it to them that way as well.
- Them: You need to change your documents to read Johnny Doe instead of John Doe. Me: They are vested as John Doe. Did they legally change their name? Was there an error on the original deed? Do we need a deed to correct an error? Them: I need it to read Johnny Doe! Me: (Repeated prior statement) Them: I don't care. I need it changed! Me: Let me transfer you to our exam team for further assistance.
- Their closing instructions stated to not collect taxes since they will be paid out of escrow. Tax bill becomes delinquent in August. Last year's tax installment was roughly $3000. They are collecting $200 in escrow. I send an email telling them their escrows are insufficient. Would they like to adjust them or would they like us to collect them. Phone rings.... Them: I don't understand. Me: You will not have enough in the escrow account to pay the tax installment. Them: How do you figure? Me: You are only collecting $200. Last year's tax bill was $3000. Them: But they aren't delinquent yet. Me: Their first payment is due August 1st, per your closing documents. You will not have enough to cover the tax bill. Them: I still don't understand.
They aren't as big as some of the others, but Ditech typically has their stuff together. Everything is organized and things are usually accurate.
When getting my mortgage, I did go with a well known lender. The reason being is we get their employee discount. (Their employees get a discount on title fees by using us.) Both realtors were nervous because they've had loans completely fall through with this company. But, my realtor knew I was buying well under what I could afford and trusted it would get done.
It is the bank's business to know this, esp. if you have borrowed the money from a third party. This becomes a debt on your account as far as the bank is concerned and could disqualify you from the loan. Sign the papers without disclosing the loan, and you have committed a felony fraud.
I never mentioned the bank neither did the OP, they were talking about the RE Agent. To view a home it doesn't matter how much money you have or who you want to borrow from as long as you can show proof of being able to purchase.
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